⚠️SUMMARY OF US Q1 GDP REPORT:🚨🚨
1. The U.S. economy contracted at an annual rate of -0.3% in the first quarter, compared to expectations for an increase of 0.2%.
That’s down from growth of 2.4% in Q4.
2. Real consumer spending rose by 1.8% Y/Y, after increasing 4.0% in Q4.
3. The GDP Price Index rose 3.7%, above estimates of 3.1%.
4. Core PCE Prices rose 3.5%, after increasing 2.6% in Q4.
• Key Takeaway: Fears of stagflation are growing as the economy grinds to a halt and inflation ticks higher.
What will the Fed do now?